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Presentation for Investors FY 2004

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PETROLEUM PRODUCTS - HISTORICAL DEMAND GROWTH • Consumption grew at a CAGR of 2.7% p.a. over the last 5 years & Production registered a CAGR of 9.2% p.a. • Demand expected to grow at a CAGR of 3.7% p.a. during X plan period (2002-03 to 2006-07) Source: PPAC, FY04 company estimates

SECTOR OVERVIEW • Sector moved from APM to Market Determined Pricing Mechanism (MDPM) • Entry of private and multinational companies in the oil sector imminent • Prices of MS/HSD generally reviewed fortnightly • Subsidies on SKO/LPG reduced- to be phased out gradually over the next 2 years

KEY REFINERIES IN HIGH DEMAND REGIONS About 67% of IOC’s refining capacity is located in close proximity to the high demand northern and western regions Northern Region Eastern Region MMT Bhatinda MMT Panipat Mathura Kandla Western Region Southern Region Koyali Salaya MMT MMT Source: Company estimates FY04, and X Plan sub group report

HIGHLIGHTS - REFINERIES • Average Refinery Capacity utilisationdeclined marginally • Distillate yield highest ever • During the year refining capacity increased to 41.35 MMT as on 31.3.04 • Strategic inland refineries locations with most effective supply and evacuation system through pipelines • All refineries meet product specification requirement in line with environmental regulations

MARKETING OVERVIEWCONTROL RETAIL OUTLET SITES IOC is focused on strengthening its position and control in the retail segment % of Retail Outlet sitesOwned/taken over long lease IOC Retail Outlets No. of Outlets • 2765 retail outlets of IBP – 41.37% Company owned

SEGMENT MARKET SHARE* • IOC has a market share of about 44% in retail segment and about 63% in direct sales. *Among PSUs

PERFORMANCE - MARKETING • Marketing accounts for about 27% of IOC’s earnings during Apr-Mar’04 • Margins have improved significantly post deregulation • Margins affected due to under recovery of subsidy on LPG/Kerosene

RESEARCH & DEVELOPMENT CENTRE • IOC’s world class R&D centre has won recognition for its pioneering work in the following: • Lubricants formulations • Refinery processes • Pipeline transportation • Bio-fuels • R&D has developed over 21,000 formulations of SERVO brand lubricants and greases • The centre has over 90 national and international patents to its credit